Mortgage Calculator Enter loan amount: Years of loan: Interest rate: Monthly Payment: Calculate function calc() { var loanAmount = document.getElementById('loanAmount').value; var loanPeriod = document.getElementById('loanPeriod').value; var interestRate = document.getElementById('interestRate').value; var monthlyRate = interestRate / 100 / 12; var monthlyPayment = loanAmount * monthlyRate / (1 - (Math.pow(1 / (1 + monthlyRate), loanPeriod))); document.getElementById('monthlyPayment').value = monthlyPayment.toFixed(2); } What is a Mortgage Calculator? A mortgage calculator is a tool used for calculating how much of a particular home loan you can afford and how much the cost of a mortgage loan will be. Mortgage calculators use variables such as the amount of loan you intend to take, the total loan amount and any associated fees to determine an estimate of what the total cost of the loan will be, as well as how much of a monthly payment you can afford. Mortgage calculators can also be used to determine how much home you can purchase based on a specific income range. By determining how much of a loan you can afford based on your income, you can create a realistic budget that will let you know what mortgage payments you can afford. How Mortgage Calculators Work Mortgage calculators can vary greatly in their complexity, and how they work will depend on the model you use. For instance, some calculators only require you to input the amount of loan you are interested in taking and the associated fees. They may then give you an estimated total loan amount, as well as a calculation of the monthly payments you can reasonably afford. Other models of mortgage calculators will ask for more information about your financial situation. This may include an estimate of your salary, debt-to-income ratio and assets. Some will then provide estimates for potential loan amounts as well as an overview of estimated monthly payments. For the most comprehensive models of mortgage calculators, they may also ask for your credit score. This addition allows for calculations of potential interest rates as well as estimated loan amounts that can be used to determine the estimated total cost of the loan. This can be important in helping you determine what loan amount is actually affordable for you. Benefits of Using a Mortgage Calculator Using a mortgage calculator is beneficial to anyone who is looking to take a loan out to buy a home. A mortgage calculator can help you plan out an appropriate budget for the loan, as well as helping determine if the loan you are interested in is actually affordable for you. Having a realistic budget and understanding what you can afford can be essential for making sure that you can pay off the loan while also having enough left over for other essential life expenses. The best feature of a mortgage calculator lies in its ability to save time. Instances of manual calculations that are commonly made with a mortgage calculator can be incredibly time consuming and complex. A mortgage calculator allows for quick and easy calculations to be made to determine what kind of loan you may qualify for, and how much of a monthly payment you can afford. Conclusion Whether you are looking to buy a home or refinance your current home loan, a mortgage calculator can be an incredibly useful tool. By having the ability to make quick and accurate calculations, you can accurately determine how much of a home loan you can afford as well as whether the loan you are interested in is a reasonable option for you. It is also beneficial to use a mortgage calculator to establish an appropriate budget. This can help ensure that you are able to make your monthly mortgage payments while still having enough money for other essential expenses.